Image Source: The Verge
For owners of CryptoPunks, a well-known early non-fungible token collection, Tiffany & Co. launched and promptly sold out a limited collection of 250 unique pendants adorned with jewels on Friday.
10,000 unique 8-bit-style produced characters from CryptoPunks, which was introduced in 2017, are kept on the Ethereum blockchain. The collection is effectively the Web3 equivalent of cave drawings, according to Noah Davis, CryptoPunk’s new brand lead and a former head of digital sales at Christie’s. Davis referred to CryptoPunks as “the earliest successful, and enduringly so, community-based NFT initiative” in a CNN interview.
According to their website and Twitter, Tiffany sold 250 “NFTiffs,” digital passes that could be minted and exchanged for uniquely created CryptoPunks pendants and a coordinating NFT artwork. But, of course, customers have to already have a CryptoPunk in order to purchase an NFT.
Tiffany designers will make a unique pendant for each NFTiff sold based on the buyer’s CryptoPunk. Each CryptoPunk is made up of a special mix of 159 colors, 87 qualities, such as a medical mask, hat, or earring, and 87 attributes, such as a hospital mask. Each piece, according to Tiffany, will be made of 18-karat gold and include at least 30 gemstones and/or diamonds.
Each NFTiff costs 30 ETH, or roughly $50,000, and gives access to a pendant and a corresponding NFT digital depiction.
According to Davis, brand lead for CryptoPunks, the Tiffany pendants are but one example of potential NFT-related products.
CryptoPunks explains NFTs
According to Davis, having an NFT entails owning a blockchain entry. To put it into perspective, it can never be altered fraudulently, cannot be faked, cannot be copied, and cannot be destroyed. “It’s always been there. So being an NFT owner gives you a lot of power in the digital age.
The parent company of Bored Ape Yacht Club, another well-known early NFT project, Yuga Labs, bought all of the intellectual property (IP) for CryptoPunks in March and made plans to provide all holders of CryptoPunks economic rights. It made it possible for initiatives like the Tiffany pendants. According to Davis, owning a token means more than that; this JPEG is yours. It implies that you have specific restrictions on what you can do with your CryptoPunk and the type of IP you may create around it. There are very few limitations. “
According to Davis, the Tiffany pendants “illustrate the license going out.” “In this case, owners of Cryptopunks are essentially hiring Tiffany’s to produce new intellectual property out of their CryptoPunk, and that new intellectual property is a pendant. To own the IP for the pendant, you must possess a CryptoPunk.
The project also exemplifies how premium brands, cryptocurrencies, and NFTs are becoming more intertwined. For example, NFTs have been sold at historically significant auction houses like Christie’s and Sotheby’s for eye-popping sums. Additionally, Gucci declared plans to enable clients to pay with Bitcoin and a number of other cryptocurrencies in May.
As NFT holders use their IP as the foundation for their own companies, Davis told CNN that he hopes the openness of commercial rights for CryptoPunk holders results in more distinctive community-driven projects.